Interesting article about Oil

wanghong

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) ^" d; S5 T# B+ y: U/ bBelow is an Interesting article I found, which says that.....Do not
% D* g' j8 ?& F+ iexpect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
. w% c5 N- s$ n2 F5 O' X" Z& Pthese oil producer will go bankrupt or out of the business even if
9 Z  G  [) ~# }0 a  ycrude prices improves. This implies also to good names such as Shell,
# h! @5 i% l: x$ y' H- |EXXON, BG, BP, Cheveron ....xyz.. oils

+ b0 C) D0 {$ A* jRecently OPEC reduced crude oil production twice over just a few
# _& a! q0 p/ V, H9 \9 r3 tmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
$ r6 a- e& ]( {$ P  ^7 Q  x/ K% yA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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  S, @8 ?" q0 |There are several reasons the price of oil is decreasing in the face
* J+ p1 w$ _, U; Q9 a( Sof so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
( l! }8 S7 d( D; I) |in the ocean near Brazil. Each of these oil fields has more oil than
0 z# ]& H/ [$ _7 y# v  M4 @Arabia.


2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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# H1 j: x) ~0 g) Q9 t6 @$ ~5 n% X3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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" j9 c4 ^1 o. @1 C" i2 o- r4. Production of bio-fuels is beginning to reach critical mass. Bio
" G* M/ i0 }5 M% ^fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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! ~2 ^0 z# d9 Q8 g" N5. Virtually every restaurant in the US and all food processing plants
0 i" |. N* _$ S3 Sare now selling their used oil to bio-diesel producers. Every pork,
# I9 g( T! O0 D3 Q5 Acattle, turkey and chicken processing plant will soon sell their fat
2 b$ l4 m$ F6 C# V3 Fto bio-diesel producers. One pork processing plant in Oklahoma is
1 ~' ]* H0 ~- Cproducing 30,000 gallons of bio-diesel per day from pork fat.

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6. There are 99 nuclear reactors in various stages of planning and
. B: X/ ?- G! N; k9 ?3 Lconstruction around the world at this time. Several hundred more are
5 g% A( V$ C) t( gexpected to be built in the future. Much of the energy they produce
  ?- B1 P' l. O3 d0 Z6 F8 U) ]* k/ gwill replace oil.

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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
: R# _( Z9 `# e$ vwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
9 w. M! \+ c3 w+ k; S/ B; S6 Wequipment.


4 [# {( u9 S8 W5 @Airlines are flying airplanes with bio-fuel. They are finding the bio-
" p1 l+ ^4 ^& V7 n3 @+ ]1 M- zfuel is cleaner and performs better than jet fuel.
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* B1 J4 z+ t# s4 Z2 S8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
: B! s* U' J6 Y# @8 Q/ A. Vavailable at very little cost or risk. The gas is displacing crude
oil.
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; i7 L" K+ k7 c2 i0 S) R9. Coal is being transformed into a clean burning liquid fuel. The CO2
0 u" V' |, b8 b# }0 J( Gproduced as a byproduct is sold to oil companies for injection into
oil wells.


" M& R/ {3 ?6 s; O6 Y10. Solar, wind and ocean energy is displacing oil as an energy
source. Three new wind turbines are being erected every day in the US.


' _- m, J$ R2 V& w- e6 jEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
: l$ o3 ?7 e1 |; y2 e: }changing. The important thing is that OPEC no longer has the ability
% u9 _4 d0 L  P- |, D  {3 M2 ?to control oil prices.


# f; U( P  v. N0 Z! L7 HWith the above scenario, I still believe that there are under
: o: m0 Z- X" ^4 t3 y, Kperformed OIL companies and probably they are yet to get the justified
/ R, ^- s* t& ~/ k5 gvalue .....
( j9 Q0 m- s$ N6 f% WIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
+ f, M! d* ~9 F* V2009 ... FYI-Only